# \$1 in 1972 is worth \$0.74 in 1972

\$

## Value of \$1 from 1975 to 1972

According to Statistics Canada consumer price index, prices in 1972 are 25.83% lower than average prices since 1975. The Canadian dollar experienced an average inflation rate of 10.47% per year during this period, causing the real value of a dollar to decrease.

In other words, \$1 in 1975 is equivalent in purchasing power to about \$0.74 in 1972, a difference of \$-0.26 over 3 years.

The 1972 inflation rate was 5.16%. The inflation rate in 1975 was 9.42%. The 1975 inflation rate is higher compared to the average inflation rate of 3.41% per year between 1975 and 2020.

 Cumulative price change -25.83% Average inflation rate 10.47% Converted amount (\$1 base) \$0.74 Price difference (\$1 base) \$-0.26 CPI in 1975 30.200 CPI in 1972 22.400 Inflation in 1972 5.16% Inflation in 1975 9.42%

## Buying power of \$1 in 1972

This chart shows a calculation of buying power equivalence for \$1 in 1972 (price index tracking began in 1914).

For example, if you started with \$1, you would need to end with \$0.74 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$0.74 over time, that means that the "real value" of a single Canadian dollar decreases over time. In other words, a dollar will pay for fewer items at the store.

This effect explains how inflation erodes the value of a dollar over time. By calculating the value in 1972 dollars, the chart below shows how \$1 is worth less over 3 years.

According to Statistics Canada, each of these CAD amounts below is equal in terms of what it could buy at the time:

Dollar inflation: 1972-1975
Year Dollar Value Inflation Rate
1972 \$1.00 5.16%
1973 \$1.09 9.38%
1974 \$1.23 12.65%
1975 \$1.35 9.42%
1976 \$1.42 5.63%
1977 \$1.56 9.40%
1978 \$1.69 8.60%
1979 \$1.86 9.76%
1980 \$2.06 11.06%
1981 \$2.31 12.12%
1982 \$2.53 9.27%
1983 \$2.64 4.59%
1984 \$2.74 3.72%
1985 \$2.86 4.40%
1986 \$2.98 4.21%
1987 \$3.11 4.19%
1988 \$3.23 3.88%
1989 \$3.40 5.26%
1990 \$3.57 4.99%
1991 \$3.70 3.75%
1992 \$3.78 2.17%
1993 \$3.84 1.65%
1994 \$3.85 0.23%
1995 \$3.92 1.74%
1996 \$4.00 2.16%
1997 \$4.04 0.78%
1998 \$4.08 1.00%
1999 \$4.18 2.63%
2000 \$4.32 3.20%
2001 \$4.35 0.72%
2002 \$4.51 3.80%
2003 \$4.61 2.08%
2004 \$4.71 2.13%
2005 \$4.80 2.09%
2006 \$4.88 1.67%
2007 \$5.00 2.38%
2008 \$5.06 1.16%
2009 \$5.13 1.32%
2010 \$5.25 2.35%
2011 \$5.37 2.30%
2012 \$5.41 0.83%
2013 \$5.48 1.24%
2014 \$5.56 1.47%
2015 \$5.65 1.61%
2016 \$5.73 1.50%
2017 \$5.82 1.56%
2018 \$5.84 0.31%
2019 \$5.96 1.99%
2020 \$6.09 2.25%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1972 amounts in 1975 dollars, based on the -25.83% change in prices:

Conversion Table: Value of a dollar in 1975
Initial value Equivalent value
\$1 dollar in 1972 \$1.35 dollars in 1975
\$5 dollars in 1972 \$6.74 dollars in 1975
\$10 dollars in 1972 \$13.48 dollars in 1975
\$50 dollars in 1972 \$67.41 dollars in 1975
\$100 dollars in 1972 \$134.82 dollars in 1975
\$500 dollars in 1972 \$674.11 dollars in 1975
\$1,000 dollars in 1972 \$1,348.21 dollars in 1975
\$5,000 dollars in 1972 \$6,741.07 dollars in 1975
\$10,000 dollars in 1972 \$13,482.14 dollars in 1975
\$50,000 dollars in 1972 \$67,410.71 dollars in 1975
\$100,000 dollars in 1972 \$134,821.43 dollars in 1975
\$500,000 dollars in 1972 \$674,107.14 dollars in 1975
\$1,000,000 dollars in 1972 \$1,348,214.29 dollars in 1975

## How to Calculate Inflation Rate for \$1, 1972 to 1975

Our calculations use the following inflation rate formula to calculate the change in value between 1972 and 1975:

CPI in 1972 CPI in 1975
×
=

Then plug in historical CPI values. The Canadian CPI was 30.2 in the year 1975 and 22.4 in 1972:

22.430.2
×
\$1
=
\$0.74

\$1 in 1975 has the same "purchasing power" or "buying power" as \$0.74 in 1972.

To get the total inflation rate for the 3 years between 1972 and 1975, we use the following formula:

CPI in 1972 - CPI in 1975CPI in 1975
×
100
=
Cumulative inflation rate (3 years)

Plugging in the values to this equation, we get:

22.4 - 30.230.2
×
100
=
-26%

Politics and news often influence economic performance. Here's what was happening at the time:

• Margaret Thatcher becomes leader of the British Conservative Party, after defeating Edward Heath.
• Ethiopia abrogates its 3,000-year-old monarchy.
• Bill Gates and Paul Allen found Microsoft.
• The US signals the beginning of the end of its involvement Vietnam, after it begins to evacuate its citizens from Saigon.
• Gough Whitlam is removed by Governor General Sir John Kerr: the first time an elected Prime Minister had been deposed in 200 years (Australia).

## Data Source & Citation

Raw data for these calculations comes from the government of Canada's annual Consumer Price Index (CPI), established in 1914 and computed by Statistics Canada (StatCan).

You may use the following MLA citation for this page: “\$1 in 1975 → 1972 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 1 Jun. 2020, https://www.officialdata.org/canada/inflation/1975?amount=1&endYear=1972.